Escolar Documentos
Profissional Documentos
Cultura Documentos
DISTRICT OF OREGON
Defendants.
ORDER
I, Roberta Kelly, hereby dernand the Court for the necessary time to file Freedom of
Information Act IFOIA] requests and/or the Court provides transparency before the Show
Cause Order hearing on February L4,20ll: Public Employees Retirement System [PERS]:
Exhibit A [3 Pp]: Oregon Public Employees Retirement System, An Agency of the State of
Oregon, Contprehensive Annual Financial Report, For the Fiscal Year Ended June 30, 2006;
page 1 - 02.12.11 | o9-1 12s-Kt hffi6144lus NrNTH crRCUrrAIrEALS DEMAND IIERSI puBLIC
EMPLOYEES' RETIREMENT; CIVIL RIGHTS $ 1983; HUMAN RIGHTS' VIOLATIONS,; ETCETEM
Poge 6, Oregon Public Employees Retirement System, Public Employees Retirement
System
percent LI00%l transparency for an independent auditor to forensically examine the entire
Exhibit 1, llPl: Judge Members If by reason of age you cannot make the requirecl
contributions during each offive calendar years at or before reaching 75 years qfage (the
mondatory retirement agefor judges), you may not become a juclge member. Any contributions
- Tier One; and,IIP): Wat is Strunk / Eugene? Exhibit 3 lPp 3l; Oregon PERS Overview, A
Presentation to the Lane County Association of PERS Retirees, Steve Delaney, Deputy Director,
April 3, 2007; Page 4, PERS System Overview and Agency Responsibilities (continuecl), In early
2003, PERS had a projectecl unfunded actuarial liability @AL) of more thun gI7 billion, ancl
... . PERS is now 104 percentfunded with ussets exceeding liubilities by 1.75 billion.
Exhibit 5, la Ppl: Letter dated Februaty 10, 2011,P{E: David Dietz, dated Febraary 7, 2011,
Bloomberg Markets Magaztne: Rich Take From Poor as (LS. Subsidy Law Funds Luxury Hotels.
The Exhibit l9Ppl, was faxed to the chambers of Judge Garr M. King, et ctl., at (503) 326.8239,
UNDS-LUXURY-HOTELS-David-Dietz-Feb-7-2011-Bloomberg-Markets-Magazine-RE-1 12th-
C ongress-Patrick-Leahy.
Page2 - 02.12.11 | 09-i 12s-KtF0so144l us NrNTH crRCUrr AIrEALS DEMAND IrERS] puBr-rc
EMPLOYEES, RETIREMENT; CIVL RIGHTS $ 1983; HUMAN RIGHTS' VIOLATIONS,: ETCETERA
The Public Employees Retirement System
TPERS] seemed much simpler to access on the
world wide web [www] when I copied the years Tg99-200g, onto CDs for the case of cv-0g-
I42L-AC, during the time line of 2008, to current: EXHIBITS were provided to U.S. Bancorp
IUS Bank] and to John V. Acosta, U.S.D.C. Judge in Portland, Oregon, in2009-2010.
PERS: SCRIBD:
http://www.scribd.com ldocl48638963lOregon-Public-Employees-Retirement-pERs-2001
http://www.scribd.com 1docl48639205/Oregon-Public-Employees-Retirement-pERs-2002
http://www.scribd.com 1docl48639266/Oregon-Public-Employees-Retirement-pERs-2003
http://www.scribd.com ldocl48639297lOregon-Public-Employees-Retirement-pERs-2004
http://www.scribd.com ldoc/48639385/Oregon-Public-Employees-Retirement-pERs-2006
http://www.scribd.com ldocl48639394lOregon-Public-Employees-Retirement-pERs-2007
http://www.scribd.com 1doc148639398/Oregon-Public-Employees-Retirement-pERS-2008
http://www.scribd.com 1doc14863963O/Oregon-Public-Employees-Retirement-PERs-2009
The links provide public access so that money can be saved and other forms of energy
It is imperative we once again address the exact demand that was brought to the Coufi,
for the exposure now glaring, grown extraordinarily retirements, at the expense of the
-portfolio
American new poor. The masses have not realized: 104 percentfunded with ussets exceeding
Iiabilities by 1.75 billion, and this is said to be a Republic form of democratic govemment.
During the time of cashing a U.S. Treasury Social Security Check (the check), deductions
by and through an Internal Revenue Service IIRS] not of the United States government but, in the
3 - 02.12.11 | 09-i 12s-Kt lT0€61441us NrNTH crRCUrr AeIEALS DEMAND ipERSl puBI-rc
Page
EMPLOYEES' RETIREMENT; CIVL RIGHTS $ 1983; HUMAN RIGHTS, VIOLATIONS'; ETCETERA
Courts, [2003, Freedom Law School] and also Tommy Cryer, et al fuLly exposed: global
partnership [see also, UNIFUNDI, FOIA filings or agatn, the transparency in the Court and also,
Further, upon attempting to cash the check, the check cashing systems, are a digital
software which has private-public parlnerships with every so-called bank. It was said that U.S.
Bancorp. issues the check. Thus, discovery immediately andlor before February 14,2011, a
discovery either by the Coufi's cooperation in transparency or, due process by and through a
FOIA. U.S. Bank refused to cash the clteck. An eye witness who has an account since 1965, or
thereabouts with U.S. Bank, Mr. Clifford C. Walker. And another eye witness to the check being
denied cashing by banks stipulating at Cash Oregon they cash goverrment checks: Yolanda
Kutp, Director for one of the govemment programs set-up to assist families and seniors.
The path of legal tender has brought an awakening. We The People should understand
how so many can reap such mountains of debt while Them The Others are in excess of
abundance. A base of have nots' for the haves,' is real and especially when the basic human
right in America, water, can be taken it's for telling the truth. Then, the reality of life's
-and,
precious gift, time, is considered an asset of a class which can apparently do whatever it chooses
until the who or whom stops it. The darkest journey in this time has been forgiven.
whom do I sewe the NOTICE, to cease, desist and end immediately the continued destruction for
the intentional tort agenda to enrich only a select few. Should our media considered The Fourtlt
Estcfte serve the people's purpose of this Country's freedom, hope can prevail in that, we may not
find the future so dark and dangerous. Terrorism may very well end in the light of all
transparency which proves the Republic form of government stands. Consultants with global
4 - 02.12.11 | og-i 12s-Kl F0-a6illus NINTH crRCUrr AIrEALS DEMAND IIERS] puBt-rc
page
partnership [see also, UNIFUNDI, FOIA filings or again, the transparency in the Court and also,
Further, upon attempting to cash the check, the check cashing systems, are a digital
software which has private-public partnerships with every so-called bank. It was said that U.S.
Bancorp. issues the check. Thus, discovery immediately and/or before February 14,201I, a
discovery either by the Court's cooperation in transparency or, due process by and through a
FOIA. U.S. Bank refused to cash the check. An eye witness who has an account since 1965, or
thereabouts with U.S. Bank, Mr. Clifford C. Walker. And another eye witness to the check being
denied cashing by banks stipulating at Cash Oregon they cash government checks: Yolanda
Kutp, Director for one of the govemment programs set-up to assist families and seniors.
The path of legal tender has brought an awakenrng. We The People should understand
how so many can reap such mountains of debt while Them The Others are in excess of
abundance. A base of have nots' for the haves,' is real and especially when the basic human
right in America, water, can be taken it's for telling the truth. Then, the reality of life's
-and,
precious gift, time, is considered an asset of a class which can apparently do whatever it chooses
until the who or whom stops it. The dark night of the soul rn this journey, understood.
In closing, do we go here: http://en.wikipedia.org/wiki/Manslaughter? And who or
whom do I serve the NOTICE, to cease, desist and end immediately the continued destruction for
the intentional tort agenda to enrich only a select f-ew. Should our media considered The Fourth
Estote serve the people's purpose of this Country's freedom, hope can prevail in that, we may not
find the future so dark and dangerous. Terorism may very well end in the light of all
transparency which proves the Republic form of government stands. Consultants with global
4 - 02.12.11 | 09-i 125-Kt h 0-e6i 44l us NINTH crRCUrr ArIEALS DEMAND IIERS] puBr-rc
page
EMPLOYEES, RETIREMENT; CIVIL RIGHTS $ 1983; HUMAN RIGHTS' VIOLATIONS,; ETCETERA
agendas must reap the whirlwind of zillions in these modern times and that may be the end of
PERS, sooner rather than later don't last forever so that judges can surf onto retirements.
-serfs
And, Goldman Sachs' et el., with their bald-bold-faced lies about them and their full
spectrum dominance lpraytng like hell) to rule their kleptocracy on earth, with the people as
digital siave-consumer-oholics.
Exhibits, [21 Pp]: PERS for the Years Ended June 30 2001 and 2000 - June 2004.
5 - 02.12.11 | 09-1 i2s-Kr hm6144l us NrNTH crRCUrr AIIEALS DEMAND tpERSl puBLIC
page
EMPLOYEES, RETIREMENT; CIViL RIGHTS $ 1983; HUMAN RIGHTS' VIOLATIONS,; ETCETERA
Oregon Public Employees
Retirement System
An Agency of the State of Oregon
Comprehensive Annual
Financial Report
For the Fiscul Yeur Ended June 30, 20A6
Paul R. Cleary
Executive Director
David W. Tyler
Chief Financial Officer
Oregon Public Emplol'ees Rctirement System
Public Employees Retirement Board
The C)regorr Legislature has delegated authority to the PERS Board of Trustees to adrninister the System. The Board
is
cotlposeci olflve trustees who administer retirement (service and disability), death, and retiree health insurance
benefits.
PERS also adrninisters the Oregon Savings Growth Plan, a deferued compensation program for
state and local govern-
ment employees.
All mernbers olthe Board are appointed by the governor and confirmed by the Senate. The governor designates the
chailperson.
one metnber must be a public employer manager or a local elected official, one member must be a union-represented
pLrblic employee, and tlrree mernbers must have experience in business management, pension
managerxent, or investing.
T'he three Board rrrembers representing business management, pension *unug.r.nt,
or investing are James Dalton, Eva
Iftipalani" and Miclrael Pittman. Thomas Grimsley was appointed to represent public employees, ancl Brenda Rocklin was
appointed to represent public ernployers. Pittman is Board chair; Rocklin is vici chair.
'lhe current term lor
each tnember began September 1,2003, with staggered expiration dates.
James Dalton
James Dalton has been with Beaverton-based technology frrm Tektronix since 1989. He currently serves as the senior
vice president of Corporate Development and is responsible fol Corporate Development, Central EngineeLing, the corpo-
rate secretary, and the law deparlment. He also chairs the Tektronix Foundation. He was a past member of ihe board of
directors ol RadiSys Corporation and the Multnomah County Library Foundation. Dalton received his bachelor's deg1ee
in econonrics from tlre tJniversity of Massachr-rsetts and his.l.D. from Boston College Law School.
Thomas Grimsley
Thomas Grirnsley has taught in the Bethel School District #52 in Eugene since 1981 and was a contract negotiator for
the Bethel teachers last four labor contracts. He has served as a member of Bethel's Joint Benefits and lnsuiance com-
nrittee lor the past l7 years and as vice president of Er-rgene's Education Association for the past eight years. He taught
in the Rogue River School District from 1979 to l98l and two high schools in San Jose, Cali-fornia, from1977 to tS7S.
Grimsley received his bachelor's degree in music and his teaching credential in music, speech, English, and dranta at
Califbrnia State University Chico in 1977. He corlpleted his math endorsement at Lane Com*unity College ancl the
University of Oregon in 1990.
Eva Kripalani
Eva Kripalarli became senior vice president and general counsel of Knowledge Learning Corporation effective
Janr-rary 7,2005, following the company's acquisition ol I(inclerCare Learning Centers, Inc. She joined KinderCare in
1997, serving as senior vice president, general counsel, and corporate secretary. Prior to KinderCare, Kripalani was a
paftner irr the law firm of Stoel Rives LLP in Portlancl, Oregon, where she had worked since 1987 with an emphasis
on corporate and securities law, ntergers, and acquisitions. Kripalani serves on the boards of directors of the Cascade
AIDS Project and the Portland State University Foundation. She also serves on the advisory board for the Porlland State
University Scliool of Business. Ms. I(ripalani was selected as a 2002 outstanding woman in busiless by the Portlald
llusiness Journal. She received her B.S. in finance lar.v, magna cum laude, from Portland State University in 1983 and her
J.D., magna cum laude, from the willamette University college of Law in 19g6.
.5.
Oregon Public Employees Rctirenrent System
I
I
F Inremal Audiror
l- HealLh lnsurance
F Hulnarr Resources
F Executive Suppon
Del-ened Compensarion
i
Steve Delaney
Deptrq Director
.Jc{nnettc S. Zang Jel'lrey I'I. Marecic Steven P. Rodemnn Craig NI. Stroud David rr\/. Tyler
AdnrinistraLor. Custolner Adrni nistrator. Information Administrator, Pol icy, Plannrng, Administrator, Benefit Adnrinistrator, Fiscal
Sen,icc Drvision Services Drvision and Legislative Analysis Division Payments Division Sen,ices Division
I I I I I
lrnage and Inibrmatiotr
Customer Service Center Legislative Issues Retirement Services Financial Reporting
Management
I I I
I I
Publications and Qualitl' Assttrance Research and Risk
Communications Beneflt Recalculation Actuarial Analysis
Intbnnation Services Management
I I I I I
Mcnrbership/Errpl o1,er
Technical Operauons Social Security Speciall-v Set.lices Budget and Fiscal Operations
Relations
I I I
I I
Legal Counscl:
Oregon Dcpartmenl o1- Justice
Orrick Herlington & SLrtcliffe LLP
lce Millerr0
Br-rllivant Llouser Bailel' PC
Insurance Consultant:
B.W. Reed Benefrts. LLC
\'lcdical Advisor:
Lau'rence Duckler. N4D
-lcch
nologl':
Saber Solutions, Inc.
Plovaliant. Inc.
,{uclitor:
Sc(rulan ol'State Audits Dir ision
.6.
Judge Members
Note; Processing a judge member benefit estimate takes at least four weeks.
Generally, if you are a judge elected or appointed on or after January \, 1984, you automatically
become a judge member of PERS on the date you took office and are not subject to the original
Judges Retirement System underORS 1.314 to 1,380 (ORS 238.505(1)). As a judge member, you
may retire pursuant to ORS 238.535(1)(a), referred to as "Plan A," or pursuant to ORS
238.535(1)(b), referred to as "Plan B."
If by reason of age you cannot make the required contributions during each of five calendar years at
or before reaching 75 years of age (the mandatory retirement age for judges), you may not become a
judge member. Any contributions remitted on your behalf will be sent back to your employer.
For more information regarding this program, please refer to the Judge Member's Handbook.
For Tier One members, Strunk requires PERS to annually credit at least the assumed earnings rate
(currently B percent) to member regular accounts, Account balance adjustments have been made for
2003 and 2004 to reflect the B percent earnings crediting that had not been previously credited due
to PERS Reform legislation.
Strunkalso upheld the use of regularly updated actuarial factors (effective July 1,2003) and the
redirection of Tier One and TierTwo member contributions from regular and variable accounts into
the Individual Account Program (IAP), effective for contributions made on or after January I,2004.
The Eugene case required that accounts had to be adjusted for every Tier One member with a regular
account that received earnings crediting for 1999, The Eugene case required PERS to reallocate 1999
regular account earnings crediting at 11.33 percent (20 percent was originally credited). TierTwo
members and Variable accounts were not affected.
PERS adjusted the 1999 earnings crediting from 20 percent to 11.33 percent forTier One member
regular accounts and provided 8 percent earnings crediting for 2003 and 2004.
Member annual statements for 2004 showed the recalculated regular account balance (including all
Strunk and Eugene adjustments). These statements were mailed to Tier One members in January
2006.
Tier One 2005 member annual statements, including 8 percent earnings crediting for 2005, are
scheduled for mid-2006.
The example below shows the affect of Strunk/Eugene on a Tier One member's regular account and
uses the following:
l of 1 21112011 3:26 AM
What is Strunk I Eugene?
The court also determined that PERS must annually credit the assumed raLe, currenily 8 percent, to
Tier One member regular accounts. PERS credited 0 (zero) percent to Tier One regular accounts in
2003 based on legislation passed that year.
For Tier One members who retired from April 1, 2000 through March 1, 2004, the frozen cost-of-
living adjustments (COLAs) will be restored as part of Strunk/Eugene implementation and will help
offset any overpayment received by the benefit recipient as a result of the Eugene case.
The Oregon Supreme Court issued its decision in the Cify of Eugenevs. PERS caseAugust 77,2005.
The Court ruled that the Settlement Agreement and 2003 PERS Reform legislation resolved the
issues in the case, The PERS Board and the original plaintiffs in the case entered into the Settlement
Ag reement.
The Settlement Agreement requires PERS to reallocate 1999 earnings to Tier One benefit recipient
accounts at 11.33 percent instead of 20 percent.
1. April 1.2000 through March Lt 2OO4 retirements: these benefit recipients have received all
payable earnings for 2003 and 2004 but will have their 1999 regular account earnings corrected
using 11.33 percent instead of 20 percent, Many in this group were subject to the COIA freeze that
was effective July 1, 2003.
2. April 1' 2OO4 through December l, 2OO4 retirements: these benefit recipients need to be
credited with B percent earnings for 2003 and a prorate of 8 percenlfor 2OO4 to the date of
retirement. These retirees were not subject to the COLA freeze but will have their 1999 regular
account earnings corrected using 11.33 percent instead of 20 percent.
3, January 1,2005 through March 1,2005 retirements: these benefit recipients received the
mid-year earnings crediting which credited 8 percent for 2OO4 and a prorate of B percent for 2005 to
the retirement date. These retirees will also be credited with 8 percent earnings for 2003 but will
have their 1999 regular account earnings corrected using 11.33 percent instead of 20 percent. Most
of these retirees are receiving estimated payments. The lookback calculation, which has not yet been
applied, will be used to determine the correct benefit.
4, April 1, 2OO5 and after retirements: most of these benefits were calculated reflecting the
Strunk/Eugene changes so few of these retirements will require adjustment. These retirees are
receiving estimated payments and their retirement benefit will now be considered final, They will
receive a Notice of Entitlement as part of the slrun k/Eugene implementation.
211112011 3:23 AM
Oregon PERS Overview
A Presentation to the
Lane County Association of PERS Retirees
April 3,2007
kmffi
PERS System Overview and Agency
Responsibilities (continued)
' In early 2003, PERS had aprojected unfunded actuanal liability (UAL) of
more than $ 17 billion, and was only 65 percent funded. Due to PERS
reform, investment performance, and timely issuance of pension
obligation bonds, PERS is now 104 percent funded with assets exceeding
liabilities by $1.75 billion
' As of December 31,2006, the PERS fund totaled $60.7 billion making it
one of the largest public or private retirement funds in the nation
' The Oregon Investment Council invests fund assets on behalf of the trust.
In the past three years, the PERS fund has ranked near the top in
investment returns for public funds with assets greater than $ 10 billion
hnsffi
PERS System Overview and Agency
Respon sibilities (continued)
Investments generated more than 85 percent of PERS revenues in 2005,
with the remainder from employer and member contributions. Employer
rates for 2007 -09 will average about 15 percent before adjusting for side
account offsets and 8.1 percent after adjusting for offsets. Member
contributions rates are set in statute at 6 percent of covered salary
PERS pays benefits to approximately 110,000 retirees, injecting more than
$2.5 billion into the Oregon economy annually. The average annual
benefit for those who retired from July 1,1996 - June 30,2006 is $22,500
hnsffi
ROBERTA KELLY
5109 N.E. Ainsworth St.; Portland, Oregon 97218
503.849.4634; roberta@ mortgagegaleria.com
Februarv 10,2011
RE: Rich Take From Poor as U.S. Subsidy Law Funds Luxury Hotels
SPEND/wG CLAUSE, ie eg THE PATRIOT ACT, etcetera
ATTENTION: ALL 112TH CONGRESS, ET AL
SENATORS vra faxes
Bern ie Sanders 12021 228.07 7 6
Patrick J. Leahy 12021224.3479
UNITED STATES SENATE COMMITTEE ON THE JUDICIARY
id Carle@-le€hv-Serate.-qav rnedia contact, Senator L
GOMMITTEE ON THE JUDICIARY
via fax[202]225.7682
Lamar Smith, Chair; John Conyers, Jr., Ranking Member
COMMITTEE ON THE BUDGET
vra faxes 12021 225.8628; 12021 225.3393
John M. Spratt, Jr. [York, SC BAR 29745], The Honorable, Chair
Paul Ryan, [Wisconsin BAR #], The Honorable, Ranking Member
HARVARD BUSINESS SC
Dr, Michael l. Norton via f ax [617] 496.5853; mnorton@hbs.edu
Patrick Bayer, Chair and Professor Dan Ariely via fax [919] 684.8974:
To Whom lt Concerns:
Please find the enclosed information by David Dietz, dated February 7, 2011, Bloomberg
Markets Magazine: Rich Take From Poor as U.S. Subsidy Law Funds Luxury Hotels. [9 Pp].
As you all know, l, Roberta Kelly, have been made a pauper by and through the United States
District Court in the District of Oregon, Division of Portland and the U.S. Congresses.
P-1 - rnOU: Roberta Kelly, dated February 10,2011 llTO: COMMITTEE ON THE BUDGET, John M. Spratt,
Jr. and Paul Ryan; COMMITTEE ON THE JUDICIARY, Lamar Smith and John Conyers, Jr.; SENATORS, Bernie
Sanders and Patrick J. Leahy; HARVARD BUSINESS SCHOOL, Dr. Michael l. Norton; DUKE UNIVERSITY,
Chairman Patrick Bayer, Professor Dan Ariely; BROOKINGS INSTITUTION, Strobe Talbott, President, ET AL
ln 2003, as a fiduciary and preferred mortgage broker for U.S. Bancorp lie eg U.S. Bankl, ef
a/., l, Roberla Kelly, was intentionally defrauded. The purpose during the past decade plus,
has been viewed by the Department of the Treasury, et al. as an intentional agenda:
Ctinton regarded New Markefs as a way to spur development and create iobs in
communities held back by high unemployment and lagging bustness growth. He touted the
program on a sx-state tour in 1999.
Srnce 2003, some of the world's biggest financial companies, including Goldman
Sachs Group lnc., U.S. Bancorp, JPMorgan Chase and Prudential, have taken advantage of
a federal subsidy that will cost taxpayers $10.1 billion -- and most of the public has
never heard of it.
What's surprising isn't the opulent makeover: lt's how the project was financed. The
work was subsidized by a federal development program intended to help poor communities.
Money spent on high-end development could have been used to build more than 1,000
joblraining centers, medical clinics and schools. The program, endorsed by Republican
Senator Rick Santorum and House Speaker Dennis Hastert and adopted by Congress, was
signed into law by President Bill Clinton in 2000.
ln 2003,1, Roberta Kelly, trusted and relied upon the promise of U.S. Bancorp, et al., for the
underwriting of real property loans. The 3151 Building, was renovated in real lahor
money, no less than $200,000.00.
lnvestors have used the program, called new Markets Tax Credits, to help build
more than 300 upscale projects, including hotels, condominiums, office buildings and
a car museum, on streets far from poverty, according to Treasury Department records
released through a federal Freedom of lnformation Act request.
Building high-end commercial projects goes against the intent of the New Markets
program, says Cliff Kellogg, a former senior policy adviser at the Treasury Department who
helped design New Markets.
P-2 - rnOrU: Roberta Kelly, dated February 10,2011 llTO:COMMITTEE ON THE BUDGET, John M. Spratt,
Jr. and Paul Ryan; COMMITTEE ON THE JUDICIARY, Lamar Smith and John Conyers, Jr.; SENATORS, Bernie
Sanders and Patrick J. Leahy; HARVARD BUSINESS SCHOOL, Dr. Michael L Norton; DUKE UNIVERSITY,
Chairman Patrick Bayer, Professor Dan Ariely; BROOKINGS INSTITUTION, Strobe Talbott, President, ET AL
Things like luxury hotels are entirely contrary to what we sef out to do, says Kellogg,
who's now a bank consultanf. Some hotels may create jobs and spur other nearby
investment, but you have to ask if these projects prevent worthwhile ones from getting done.
Goldman targeted tracts on the upswing in Pittsburgh and Portland, Oregon, when
the firm go/ ifs first New Markets investment authorizations in 2002. ln Pittsburgh, $30.5
million of a $75 million Goldman investment authorization went to a shopping center in the
East Liberly neighborhood.
Yes I'm angry, says Larry Dowling, pastor af Sf. Agatha, a Roman Catholic parish in
the neighborhood. lt was very disturbing to hear that the Blackstone was benefitting from this
program. There's a great need in this community for economic development and iobs.
Around the Rules: ln Tacoma, Washington, investors found a way to get New Markets
handouts in an area with just a 1 percent family poverty rate. U.S. Bancorp and two other
investors used a $34 million Treasury authorization in 2010 to finance construction of an
antique car museum.
Historic Armory: ln Portland, Oregon, Goldman and U.S. Bancorp partnered with
city government on another cultural development helped by New Markets. ln 2004, the
Portland Development Commission was advocating conversion of a historic armory
into a nonprofit theater, and the project caught Goldman's eye, according to city
records.
The armory, which housed horses and cannons in the 19rH century, sat in the city's
Pearl District, a former industrial area enjoying a resurgence with upscale sfores and housing.
The tract qualified with a 41 percent individual poverly rate because it included one poor
neighborhood on its fringe. The family poverly rate was 11 percent.
Goldman arranged $28 million in New Markets financing for the theater. U.S. Bancorp
put $8.4 million into construction and loaned an additional $11 million. That allowed it to win
$10.9 million in tax credits, city records show.
Goldman will collect a fee of $1.4 million for tracking finances for the government,
according fo spokesman Cohen.
It's Ludicraus': says Shelley Lorenzen, a former League of Women Voters board
member who has studied Portland urban renewal. The area has become kind of the hottest
real-estate market in town, with the besf res/a urants, art galleries and very high-end condos.
Kellogg, the former Treasury official who helped structure the subsidy plan, says New
Markets needs changes. lt should divert money away from projecfs such as high-end hotels
and exhibit halls, he says. New Markefs shou/d target small-bustness development in regions
that truly need a lift, Kellogg says. After all, he says, that was the point from the start.
P-3 - f nOU: Roberta Kelly, dated February 10,2011 ll TO: COMMITTEE ON THE BUDGET, John M. Spratt,
Jr. and Paul Ryan; COMMITTEE ON THE JUDICIARY, Lamar Smith and John Conyers, Jr.; SENATORS, Bernie
Sanders and Patrick J. Leahy; HARVARD BUSINESS SCHOOL, Dr. Michael l. Norton; DUKE UNIVERSITY,
Chairman Patrick Bayer, Professor Dan Ariely; BROOKINGS INSTITUTION, Strobe Talbott, President, ET AL
United States Senate Gommittee on the Judiciary, the courts are under your jurisdiction
and therefore, I hereby once again request an intervention into the cases: Civ. Nos. 0B-1421-
AC, and 09-1125-Kl.
It should not be possible that the Judges in the U.S.D.C., ffederal building business operation
for the courts, dedicated to William Jefferson Clinton, in 19971, cannot be well informed to
protect the public: the agenda with the City of Portland and the Porlland Development
Commission.l
THIS lS AN EMERGENCY! The water was intentionally shut-off at 5109 N.E. Ainswofth
Street, Portland, Oregon! The attacks to kill my family and me, can no longer be tolerated. I
am noticing Patrick Leahy, Bernie Sanders, et al., that the City of Portland, State of Oregon,
has been noticed repeatedly and must be waiting for the top level of government to intervene.
lmmediate attention, post haste!
[The spouse of PDC Commissioner, telephone receptionist for an office where l, Roberta Kelly,
was VP [Mortgage One] and Branch Manager, 1990s1. A Freedom of lnformation Act request
and depositions, post haste.
P-4 - f'nOU: Roberta Kelly, dated February 10,2011 llTO: COMMITTEE ON THE BUDGET, John M. Spratt,
Jr. and Paul Ryan; COMMITTEE ON THE JUDICIARY, Lamar Smith and John Conyers, Jr.; SENATORS, Bernie
Sanders and Patrick J. Leahy; HARVARD BUSINESS SCHOOL, Dr. Michael l. Norton; DUKE UNIVERSITY,
Chairman Patrick Bayer, Professor Dan Ariely; BROOKINGS INSTITUTION, Strobe Talbott, President, ET AL
Oregon Public Emplovees Retirement Svstem
Summary of In.r,estment Fees, Commissions, and Expenses
For the Years Ended June 30, 2001 and 2000 t001 )ono
lfllcrnational Equit) Fund Mrnager Fees
Acadian $ I,576,755 I ,605,9 1 3
Barclay's Global lnvestors (EAFE) 68 I,238 94 I ,003
Bmndes Investnlenl 2, I 94,358 2,002.424
CIay Finlay, lnc. 1 1,583,919
"405,073
Driehaus Capital 2,57 5,067 46
3,5'70.7
Ge nesis lnvestment Management Ltd. 1,478.937 1,593,066
Lazard Asset Management 60s,358
Nlarvin & Painter Associates 1,694,344 2,258.142
Montgomery Asset 1,143.827 1.29t,290
Nornura Capital Managenlenl r61,376
Rorve Price 2,667,962 3,004,1 60
Sanford Bernstein 1,906.9r l t,902,646
Schroder Capital l,t 19,097 1.276,855
TT lnternatiorral 1 ,640,711 r,67 1 ,040
Domcstic tiquitv Fund l\,lanagers
Alliance Capital Managernent I ,930,41 1 2,106,805
Barclay's Global lnvestors (all funds) 899,1 86 912,47{)
Becker Capital 1,276,596 r,095.997
Brown Capital 1,029,978 1,039,261
Equ inox I,97 t,206 1 00, r1t
Fiduciary Trust 558,65 I I,595,438
Froley-Revy Equity t,193;794 1,481,126
Nichotas Applegate 2,518,571 4,829,058
Nofihern 1'rust Cornpany q1s 70t 1,1 91 .781
Oak Associates t,-s80,612 |,422.506
Palisade Capital 62',7,304
Peachh.ee Asset N4rnagement 896,0 l4 ))) 11i
Santbrd Ilerlstein 2,236,340 2,088.9,15
Shott Capital Managenrent 2,506.635 7 t.226
ThompsonlRubenstein lnveston r,883,385 1 .833, I 43
Veredus Capital Maltagernent 236,408
Wanger Asset Managelnent 3,1 04,783 3,050,002
Wellington Matragentent 2,508,1 75 1,9 I 8,480
Winslorv Capital Mallagement 218,841
Zesiger Capital Group 1,330,483 2,240.892
Fircd hconrc i\,[anagers l.ces
Alliance Capital Management 3 r 1.996
Barclay's Global Investors (Colporate Governr)rent Bond lndex) 198,070
Blackrock Financial Management 360,267
Fidelily Managenlent Trust Co. 384,785
Mercury Asset Man:lgelrent 679,6;;
lllerrill Lynch lnvestlnenl Managers 643,289
Ilogge Clobal Partuers 796,073 844.701
Wellington Managerlent Co. 1 ,703,07 5 724,963
Western Assct Managernent 1,554,624 686,2 I 0
l{errl Lstatc InYestment I.und
La Salle Advisors (Alex Brown Realty) 4,113,633 979,566
L.cverrged llxtOut
KKR 12,837,960 12,161.660
Custoclial I'ces for Invcstment X,Ianagers
State Street lJauk 715,000 384,505
AlternatiYc E<1uit1, N{anrgers liees
Amphion Eru opean Equity 1.004,542
Arrora Equity Partners 703.1 r0 617,611
BCI Groivth 1 ,279,301 I ,807,7 I 4
Ciistle I larlan 534,701 1,894.024
CVC European 2,250.000 1,6t4,711
Doughty Hanson 2.tJ41,373 3,1 84,02r
Exxel Capital Paflners ?,015,425 857, I 33
Gryphon Parlners 5ql qs5 1,019,979
Flicks lr4use 3,319,461 2,988,312
HSBC Equity 574,886 482, l 43
JI-L 1nc. 3,005,339 ) 161 \q)
Shott Capital Managerrent 2,500,112
TPG Parrners 6,966,1 03 7,079,727
'l'SG F urd
r ,60 r ,466 I ,584,00 l
Veslar Capital |,00t ,971
Otlter Alternarive Equity Fees 6,039,406 o lol 1))
Real Estate Fees nnd Expenses 25,772,816 7,838,1.19
Real Estate Bond 5,539,596 3,528,88 8
State 'l'reasury Fccs 3.3',77,102 4,989,014
Securities [-cnding r 39,825,304 139,1 89,078
Brokcrage Commissions 32,871,207 35,329,195
Othcr Investment Fees and Expenses 82 1.556 724.3'78
'fotal lltestment Fees, Comnrissions, and Expenses -
Defined Bcncfit Pension Plrn q_315,816,s39. [__r96,938,521 .
'33
Oregon Public Employees Retirement System
$ __ls2-,6o,1s3
$ 886,945,512
Brokerage commissions on purchases and sales are too numerolls to list; therefore, only the top 20 brokers by
amount of commission paid are shown.
.43.
Oregon l'ublic Employees Retirement System
.i]"0.
(hegon Public Flmplovees Retirement System
$ 622,855,990
$ 1,925,069,431
.-13.
Oregon Public Fimplol'ees Retirement Systcnr
Schedule of Fees and Commissions
For the Fiscal Year Ended.Iune 30.2002
Brokerage commissions on purchases and sales are too numerous to list; therefore, only the top 20 brokers by amount
of con-rmission paid are shown.
.49.
Oregon Public Employees lletircment System
s TeJAJ!,3!
Brokerage cotnmissions on purchases and sales are too numerous to list; therefore, only the top 20 brokers by arnount
of commission paid are shown.
.49.
Orcgon Public Employees Retilement System
Summary of Investment Fees, Commissions, and Expenses
For the Years Ended June 30, 2004 and 2003
.41
Oregon Public Employees Retirement System
Brokerage commissions on purchases and sales are too numerous to list; therefore, only the top 20 brokers by
arnount of cornmission paid are shown.
Oregon Public Employees Retirement System
"M
&ffi f, t:rr'
ffiffi"ffi,wffi rrnrrrlman
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IY
'
usA 111 SW FifthAvenue. Suite 3700
.-1.,,,rrr,or," a,d Actrr,ttras
Portland, OR 97204-3604
Tel +1 503 227.0634
Fax +1 503 227.7956
wwwmilliman.com
December 1,2004
Retirement Board
Oregon Public Employees Retirement System
We have performed an actuarial valuation of the Oregon Public Employees Retirement System as of
December 31,2002. The 2003 valuation is in progress but not completed as of this date. ln our opinion,
the System is an actuarially sound system based on the current actuarial assumptions.
Actuarial valuations are normally performed every two years, as of the end of each odd-numbered year.
Special interim valuations were performed as of December 31, 2000 and December 31 ,2002.
ln preparing the valuation, we relied upon the financial and membership data furnished by the System.
Although we did not audit this data, we compared the data for this and the prior valuation and tested for
reasonableness. Based on these tests, we believe the data to be sufficiently accurate for the purposes of
our calculations.
Milliman prepared the information presented in this Actuarial Section of the 2004 Comprehensive Annual
Financial Report, including the following supporling tables, based on information in our 2002 actuarial
valuation report:
. ActuarialAssumptionsand Methods
- Economic Assumptions
- Mortality Tables
- Rates of Retirement and Disability
- Rates of Other Terminations of Employment
- Future Salaries
- Unused Sick Leave
- Probability of Annuity
- Probability of Vesting
- Actuarial Cost Method
- ActuarialValue of Assets
. Actuarial Schedules
- Schedule of Active Member Valuation Data
- Schedule of Retirees and Beneficiaries
. Summary of Actuarial and Unfunded Actuarial Liabilities
. Solvency Test
. Recommended vs. Actual Contributions
ln addition, we reviewed the Summary of Plan Provisions and prepared the Schedules of Funding
Progress in the Financial Section of this report.
Legislation enacted during 2003 had a significant impact on the actuarial liabilities of the System.
The 2001 and 2002 valuations have been performed including the impact of the 2003 PERS Reform
Legislation. This legislation is currently under judicial review.
.54.
Oregon Public Employees Retirenrent Systenr
The Retirement Board has sole authority to determine the actuarial assumptions and methods used for
the valuation of the System. The Board adopted all of the actuarial methods and assumptions used in the
2002 valuation
The findings have been determined according to actuarial assumptions and methods that were chosen
on the basis of recent experience of the System and of current expectations concerning future economic
conditions. ln our opinion, the assumptions used in the actuarial valuation are appropriate for purposes of
the valuation, are internally consistent, and reflect reasonable expectations. The assumptions represent
our best estimate of future conditions affecting the System. Nevertheless, the emerging costs of the
System will vary from those presented in this report to the extent that actual experience differs from that
projected by the assumptions.
The actuarial valuation was prepared in accordance with generally recognized and accepted actuarial
principles and practices which are consistent with the applicable Standards of Practice adopted by the
Actuarial Standards Board of the American Academy of Actuaries. ln addition, the assumptions and
methods used meet the parameters set for disclosures by GovernmentalAccounting Standards Board
Statement No. 25.
The undersigned is an independent actuary, a Fellow of the Society of Actuaries, a Member of the
American Academy of Actuaries, an Enrolled Actuary, and experienced in performing valuations for large
public employee retirement systems.
ln conclusion, the Oregon Public Employees Retirement System is an actuarially sound system based on
the current actuarial assumptions.
Respectfu ly su bmitted,
I
ftt*--
LJ
Mark O. Johnson, F.S.A., M.A.A.A., E.A.
Principal and Consulting Actuary
.55.
Oregon Public Emplol,ees Retirement Sl,stem
b. Forcign Currency Risk
Investments at June 30, 2005 Fair Value
Foreign currency risk for deposits is the risk that changes
in exchange rates lvill adversely affect the tair value of the U.S. Treasuly Obligations 1.599.1 84.999
deposits. At June 30,2005, $75.5 nrillion in cash and caslr U.S. Federal Agency Mofigage Securities 2,115.644,t 54
eqLrivalents was exposed to foreign currency dsk. The U.S. U.S. Federal Agency Debt 434,909,304
dollar balances of these deposits, olganized by currency U.S. Treasury Obligations, Strips 53,167 ,167
denomination, are presented in the table on page 31. U.S. Tleasury Obligations - TIPS 451.668,640
Intenrational Debt Securities 1,543,'708,546
B. Itrvestnrents
Corporate Bords 2,873,410,488
The first schedule on the right presents the fair value of Municipal Bonds 40"190^431
investments held by the state ol Ot'egon for PERS as of June Collateralized Mortgage Obligations 1.368.028,s38
30. 2005. AssetBacked Securities 881,292,544
a. Credit Risk Debt Securities Futures and Options (11,056,r30)
The Oregon Investment Council (OIC) establishes policies Mutual Funds * Domestic Fixed Income 2,008,1 89,405
fol the investment pERS' Mutual Funds - Intemational Fixed lncorre 904,817,949
and reinvestrnent of moneys in lnsurance Contracts 7 )6c) )c)c)
investment firnds.
It is the OIC's policy that no more than 30 percent of Total Debt Securities Investments 14.325,485,340
the debt securitr'es portfolio be below investment grade.
Secr-rrities rvith a quality rating of below BBB- are consid- Restri cted lnvestment Coutracts 1.490,661
ered below investment grade. Policies also require that the
mininrlrm aggregate credit quality be A+ as measured by the Total Debt Investmelrts 14.329.976.001
weighted average of the portfblio. As of June 30, 2005, the
Dornestic Equiry Securities l 0,014,5 1 5,001
fajr valLre of below grade investments is $2,537.2 million or
lntcrrraliorral Equiry Securities 8,401,042,591
17.7 percent of the debt secr-rrities portfolio, and the rveight-
Mutual Funds - Domestic Equity 6,80r,264,778
ed quality t'ating avelage is AA-. Mutual Funds - International Equity 2,503,733,63 l
The second table on tlre right shows the quality ratings for. Lrnrited Paltnerships 3,009.8 1 9,8 18
debt inVestments as of June 30, 2005. Leveraged Buyouts 1,296,865,385
b. Custodial Credit Risk Venture Capital n3,629
Custodial credit lisk lor investments is the risk that, in tlre Real Estate and Real Estate Mortgages 2,907,267,839
errent of a failure ol the counterparty, PERS will not be able
to recover the valr-re of the investments or collateral securi-
Total PERS lnvestments $ 49,264,658,673
.29 .
Oregon Public Emplol,ees Retirement System
There is no limit on single issuer investmellts for domestic eqLrities, althouglr the amount that may be invested in
domestic equities is tatgeted at 28 to 38 percent of PERS' portfolio. At June 30, 2005, domestic equities werc 32.2 per-
cent of total assets. Policy states that the asset class will be diversified across the U.S. stock market. Additionaily, both
passive and active investing strategies are employed, and several external managers engage in active management. The
policy for international eqr-rity investing is the same as that of the domestic equity portfolio in that holdings are diversi-
fied across stock markets outside of the United States. Passive and active investment strategies are employed, and several
active managers invest in different market segments. The target allocation range for intentational equities is 15 to 25 per-
cent of PERS' portfolio. At June 30,2005,20.9 percent of total assets were invested in international equities.
d. Interest Rate Risk
Interest rate tisk is the risk that changes in interest rates will adversely affect the fair value of an investment.
Policies state that tlre debt investment poftfolio wjll maintain an average bond duration level of plus or minus 20 per-
cent of the benchmark dulation. As of June 30,2005, the average duration of PERS'debt investment portfolio rvas 4.07
years, 4.5 percent lower than the benchmark duration of 4.26 years. Since the debt investment porlfolio may contain
holdings witlr prepayments and variable cash flows, an analysis of interest rate dsk r.rsing the segmented time distribLrtion
method is plesented in the schedule below.
Schedule ol lnterest Rale Risl< Segmenlerl Time Distribution luvestment Maturities at June 30, 20(E
-
Less than More than Total Fair
Inr,estment 1 year I - 5 years 6 - 10 years 10 years Value
.30.
Oregon Public Employees Retirement System
lnternational Cash and Cash Equivalents and Investments at Fair Value in U.S. Dollars at June 30, 2005
f. Derivatives
Derivatives are contracts for which the value depends on, or derives from, the value of an underlying asset, reference
rate, or index. In accordance with state investment policy, the Oregon State Treasury invests either directly or through its
otrtside itrvestlnent managers on behalf of PERS in contracts that have derivative characteristics. Derivatives are used to
manage the overall lisk of investment portfolios. PERS does rrot hold or issue derivative financial instruments for trading
purposes.
PERS leports investments in accordance with GASB Technical Bulletin 2003-01. The standard provides disclosure
reqttirements for govemmental units holding detivatives that are not repofied at fair value in the statements of net assets.
Since all investments, including those with derivative characteristics, are reported at fair value in accordance with GASB
Statements 25 and 31, no additional disclosures are required.
Oregon Public Emplol'ees Retirement System
C. S ec u rities Le n clirt g
Securities Loaned Fair Value
hr accordance with state investment policies, PERF par-
ticipates in secr"n'ities lending transactions. Through securi- U.S. Governrnent Securities 461 ,940,029
ties lending authorization agl'eements, the state treasury lras U.S. Agency Securities 1,938,171,754
aLrthorized its custodian to lend its securities pul.suant to a Donrestic Equity Securities 1,262,833,334
lbrm of loan agreement. Both PERF and the bomower.s nrailt- Donrestic Debt Securities 399.083,894
tained the righr to tenxinate all securities lending transac- lnternational Equity Securities I,393,653,018
tions on demand. There were no significant violations of tlre lntemational Debr Seculities 53.000,826
provisions of securities lending agreements during the period
of these financial statements.
Total $ 5,514,682,855
(7) Leases
Operating leases at'e rental agleements where the payrnents are chalgeable as renx
Opcrating
and recorded in the services and supplies expense account. Should the legislature I-eases
disallor.v the necessaly funding for particulat leases, all lease agreements contain 2046 $ r 36. r25
termination clauses u,hich provide for cancellation of the lease as of the end of a 2007 I 10.043
fiscal year. Lease obligations decrease each year because of various lease expira- 2008 6,61 8
Thereafter
tions. lt is expected that ongoing leases will be replaced rvith leases which have 0
Total Future N,linimum
higher rental lates due to inflation. Fiscal year 2005 operating lease expenses were Lease Payments $ 232.786
s r35.370.
The schedr-rle to the riglrt summarizes the minimunt lease payments for operating
leases in effect as of Jr,rne 30,2005.
. 32.
Oregon Public Employees Retirement Systenr
Trust Cornpany to provide financial services. There are nine investment options with varying degrees of market risk. Up to
for,rr financial institutions provide investment services in mutr.ral funds for each investnrent option. A parlicipant receives a
blend of these mutual funds within the investment option. Pafiicipants direct the selection of investment options and also
bear any market risk. The state has no liability for losses under the plan but does have the prudent investor responsibility.
ofdue cale.
PERS nray assess a chalge to the participants not to exceed 2.0 percent on amounts defened, both contr-ibutions and
investment earnings, to cover costs incurred for administering the program. Actual charges to parlicipants, inciuding
investment charges, for the year ended June 30, 2005, aver-aged 0.26 percent of arnounts deferred.
Oregon Revised Statute 243.505 established a Deferred Compensation Advisory Committee to provide input to the
PERS Boald. This comnrittee is conrposed of seven members who meet at least quarlerly.
.33.
Oregon Public Emplol'ees Retirement S5'stem
The first table on this page describes PERS building COPs issued and outstanding. The second table below summarizes
all ftrtule PERS bLrilding COPs payments of principal and interest for each fiscal year during the next five-year period
ending June 30, 2010, and the periods ending June 30, 2015, and June 30, 2017. The cun'ent portion ofthe PERS buildin"
debt is $71 1.825.
Amount
and Interest
Issued
Outstanding Rate Due Date lssue Date
In 2004 COPs, Series A, were issued to finance the purchase of computer software and system upgrades to maintain
accttl'acy and statutory compliance with current Oregon larv. The COPs were sold on June 16,2004, for $9.9 million at
a 3.20 percent interest rate. The Series A COP has a final repayment due May 1,2009. Proceeds from the2004 Series A
COP, not yet used, are listed as "Restficted lnvestment Contlacts" on the Statement of Fiduciary Net Assets.
This table desclibes OPSRP computer system COPs issued and outstanding.
Amount
Issued and Interest
Outstanding Rate Due Date Issue Date
The follorving table summarizes the changes in long-term debt for tlie year ended June 30, 2005:
(10) Litigation
Follorving is a summaly of cument PERS-related lawsuits:
A. Cottsolidated Public Ernployees Retirement System Litigttion ('Strunk')
On Mar"ch 8, 2005, the Oregon Suplenre Court rendeled its decision in Strunkv. PERB, el al. ovefiuming portions of the
2003 PERS Refornr Legislation and Lrpholding the balance. After the Supreme Courl's opinion, petitioners filed petitions
for awalds oiattorleys'fees and costs totaling about $2.5 million. On May 31,2005, all of the respondents (the State, the
public employers, and PERB) filed oppositions to the petitjons. Petitioners filed reply bliefs on June 28,2005. There is no
deadline fol the Courl to render a decision. Counsel is unable to provide an opinion as to the olltcome.
B. Cit1, OJ'Eugene v. State of Oregon, PERB, et ul.
The Marion County District Court determirred that cefiain rate orders that PERB issued in 1998 and 2000 were enone-
ous and remanded so that PERB could revise the rate ol'ders. After appealing the decision, PERB and petitioners entered
into a settlement agreement. Interveners, who are PERS nembers, objected to the settlement agreement and nroved that
the Coult not disrniss the appeal. On August I l, 2005, the Oregon Supreme Courl determined that the appeal by tlre inter-
veners was moot by virtue of the settlement agreement between PERB and the employers.
On August 24,2005, intervener-appellants filed a Petition for Reconsideration with the Supreme Court. In the petition,
the intelveners asl(ed the Court to nrodify its decision to not sirnply disrniss the appeal, but to vacate Judge Lipscomb's
judgnrent as moot. The Couil has not asked for a response to the petition, and neither PERB nor the State nor the employ-
ers have filed any l'esponse. There is no deadline for the Courl to render a decision. Counsel is unable to provide an opin-
ion as to the outcome.
C. PERS Reform Legislntiort
There ale a number of related state and federal coult challenges to the 2003 PERS Reform Legislation and its implemen-
tation. Currently cor-rnsel is unable to provide an opinion as to the outcome of these cases.
D. l{hite, et al. v. PERB
On April 22,2004, in Multnomah County Circuit Cotrt(White.1), petitioners challenged the Citl: of Eugene settlement
(see above), tlie reallocation of 1999 eamings, and tlre allocation of 2003 eamings. Vafious local PERS employers inter-
vened and also began a separate action in Marion County Circuit Coult.
.35.
Oregon Public Employees Retirenent Sl,stem
On July 9,2004, the Boar"d filed a motion to change the venue of this case to Marion County (White 11), which was
later granted. A writ of ntandcmuts was filed with the Oregon Supreme Court challenging the change of venue. While the
Marion County White case was on hold, plaintiffs, facing statute of limitation concelns, filed a new action in MLrltnomah
County (White III).
The Oregon Supreme Conrt granted the writ of mandnmus setting aside the transfet of l(hite 1to Marion County. Due to
various pt'ocedr-rral challenges, including a motion to change the judge, the Marion Courrty case was not transferredback
to Multnomah County untilJuly 21 ,2005.
Shortly after the City of Eugene decision came down, Judge Henry Kantor sent an e-mail to the parties inqr-riring as to
the next steps. After a Septenrber 30,2005 status confelence, plaintiffs' counsel filed stipulated orders with the Court con-
solidating tyhite I and 1/ and dismissing White III. Defendants filed motions for judgn.rent on the pieadings and to disn.riss
on October 21 ,2005. The hearing on these motions is set for December i6,2005. Counsel js unable to provide an opinion
as to the outcome.
E. Hon,ser v" PERI] et al.
Orr Jtrly 29,2005, Bradford Horvser and Bryon Beaulieu broLrght a purported class action on behalf of themselves
and all othels sjmilarly situated against PERS, the Board, the state of Oregon, and the Oregon Deparlment of Revenue
over alleged enoneoLrs reporting of duty-related disability payments on fedelal tax reporling forns (Fotm 1099-R).
Plaintift's sued PERB for breach of contract and conversion. Although tlre complaint does not specify a doliar amount the
Deparlment of Revenue and PERS staff estimate a potential exposure of approximately $1.8 million. As pled, if a judg-
tnent lvas entered against PERS the judgment would be covered under Oregon's Torl Claims Act. If the matter is settled,
there is an ttnt'esolved question as to whether PERS or the Torts Claims Act would cover the loss. Counsel has no opinion
at the present time as to the likelihood of an unfavorable olltcome. Parties are exploring settlement.
F. Murcuy v. PERB
The petitioner t'equestecl that PERS change its method of allocating administrative expenses to variable accounts for
200 I and 2002" Petitioner is appealing to the Oregon Court of Appeals from a final order by the Board rejecting his con-
tention. No specific monetary amount has been pled. There is no insurance. Plaintifls objective is to obtain additional
benefits fbr himselland other members who participate in the Variable Account. PERS is contesting the case and counsel
has no opinion on the likelihood of an unfavorable outconre or an estimate of potential loss at this time.
G. Contests and Appeals o.f Stalf Determinatiorts
Thele are a number of claims by petitioners appealing orders of the Board or determinations made by PERS staff. These
ploceedings are being ntade putsuant to the administrative process. These olders or determinations resulted in denying
petitioners some or all of the benefits to whiclr they claim to be entitled. The Board is contesting the cases and counsel is
unable to determine possible losses at this time.
previously received zero percent crediting for 2003 will be creclited with 8.00 percent for 2003. The effect ofthese adjust-
ments will resr.rlt in a decrease in amounts clrarged to ernployers to fund retiree benefits with a corresponding reduction
in amounts held in the Benefit Reserve, a decrease in tlie rernaining Deficit Reserve, and an increase in the Contingency
Resett,e. TIre amounts will not be determined until all member and employer accollnts and retiree benefits have been
adjLrsted and cannot be reliably estimated at this time. Certain Tier One members who have retired and received 20.00
percent crediting for I 999, their beneficiaries, and altemate payees will have their benefits adj Lrsted for a reduced account
balance; some retired members will also see benellt adjustrnents through reinstated cost of living increases due to this
decision. Certain retired Tier One membels, beneficiaries, and altemate payees who received lump-sum distributions will
be ir.rvor'ced to l'ecover overpayments. The amourts to be recovered cannot be reliably estimated at this time.
.36.